GTBank Releases Q3 2019 Unaudited Results, Reports Profit After Tax of ₦146.99 Billion

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Ankara Styles For Slim Ladies: Top 5 Looks You Must Try! (Pictures)

Today’s fashion of Nigeria shows off plenty of Ankara styles for slim ladies, that will help them to create a...

Toyota Introduces New Camry and Avalon All-Wheel Drive Sedans (Photos)

Developed and Assembled in the U.S. Exclusively for North America Available as Stand-Alone Option on Most Model Grades ...
- Advertisement -
- Advertisement -

Key Highlights 

  • Gross Earnings decreased by 3.3% to N326.03bn from N337.27bn in Q3 2018
  • Profit before Tax increased by 3.9% to N170.65bn from N164.25bn in Q3 2018
  • Profit after Tax increased by 3.4% to N146.99bn from N142.22bn in Q3 2018
  • Total Equity increased by 10.6% to N636.75bn from N575.57bn in Q3 2018

Guaranty Trust Bank Plc has reported a 3.2% YoY increase in Earning Per Share to N5.19 for 9M’19 in its latest filing with the Nigerian Stock Exchange (NSE). The growth in earnings can be attributed to stronger net fee and commission income (+22.9% YoY) as well as modest improvements in net interest income (1.3% YoY) and operating efficiency (the cost to income: -150 bps).

Gross loans to customers grew by 7.8% from H1’19 level to N1.5 trillion in 9M’19. This implies a year-to-date loan growth of 6.8% compared to the 1.0% contraction observed in H1’19. It appears, however, that the size and structure of this loan growth were not enough to enable the bank meet the new LDR requirement of the Central Bank of Nigeria (CBN), given that GUARANTY was one of the banks impacted by CBN’s LDR-related penalty. By our estimate, GUARANTY had an LDR of 63.8% (bank only) as at September 2019. This supports our view that the apex bank may have applied the more stringent loan to funding ratio in its evaluation.

Read:  Moet boss says Nigeria is its biggest Champagne market in Africa (Images)

Despite the growth in loans, NPL ratio declined from 7.3% in FY’18 to 5.6% in 9M’19. This eases our initial concern regarding the impact of the CBN’s credit creation drive on overall asset quality.

There is a sustained improvement in cost-to-income ratio to 36.5% in 9M’19 (H1’19: 37.2%; FY’18: 38.3%).

Annualised ROE and ROA, at 32.3% and 5.8% respectively, are currently ahead of FY’18 levels and management’s guidance for FY’19E.

There is a weakness in both net interest income (-2.7% QoQ) and non-interest revenue (-21.0% QoQ) in Q3’19 relative to other quarters.

The decline in non-interest income was largely driven by lower gross fees and commission income (-22.4% QoQ) and weaker net trading income (N155 million compared to N5.2 billion in Q2’19). Interest expense was also higher during the quarter, likely reflecting the 100bps increase in more expensive deposits.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Shade Corner Episode 10 Nollywood Life

We are Talking Nollywood For Life  in Episode 10 of Accelerate TV’s Shade Corner Season 3 Can a Shade...

Lagos, Ogun Win 2019 Cowbellpedia Mathematics Competition

In a thrilling, but energy-sapping mental duel last weekend, representatives of Lagos and Ogun States shrugged off all challenges to emerge victorious in the...

Mouka Ups Game for Sustainable Market Control, Earns NSP’s Endorsement

One of Africa's leading mattress and beddings company, Mouka, has recently introduced an improved version of its Orthopaedic mattress range, Regal and Regina to...

Toyota Introduces New Camry and Avalon All-Wheel Drive Sedans (Photos)

Developed and Assembled in the U.S. Exclusively for North America Available as Stand-Alone Option on Most Model Grades Exemplary Fuel Efficiency with 202-Horsepower...

Tetra Pak launches 2019 Index Based on Ipsos global study

New report focuses on the convergence between consumer perceptions of health and the environment, particularly in the food and beverage industry. In a study carried...

More Articles Like This